Sri Lanka in 2022: Can it be saved..?

Sowmiya Sriram
Sri Lanka in 2022: Can it be saved..?

India's neighbor sri lanka has been embroiled in various problems for a long time and the New Year has begun with great fear. While sri lanka is reeling under heavy financial problems, inflation in the country has reached a historic high.
As a result, food prices have skyrocketed and the Sri Lankan treasury is empty, recovering from corona damage.
The Sri Lankan government will have to repay about $ 7.3 billion in domestic and foreign debt over the next 12 months. The most important of these is the repayment of the $ 500 million international sovereign bonds in January.
 As of November, Sri Lanka's total foreign currency reserves were just $ 1.6 billion, with $ 500 million to be repaid by January, followed by $ 6.7 billion.
 As the Sri Lankan economy has yet to recover from the corona epidemic, the country's high-income tourism sector continues to suffer. Meanwhile, the country's revenue and cash reserves have been severely affected by the Sri Lankan government's excessive spending and tax cuts. The Sri Lankan government's excessive debt to china is having a major impact on the country's economy. sri lanka, led by Gotabhaya Rajapaksa, is in a state of bankruptcy at any time due to the very low foreign exchange reserves.

World bank Inflation in sri lanka rose to 12.1 percent in december from 9.9 percent, while food inflation rose to 22.1 percent from 17.5 percent. The World bank estimates that 500,000 people in sri lanka are living below the poverty line.
For more interesting updates click and follow Indiaherald WhatsApp channel

Find Out More:

Related Articles: